IBM Revenue Grows for the First Time Since 2012

19. January 2018

Date: 19-01-2018
Source: The Wall Street Journal

A $5.5 billion charge related to the new U.S. tax law pushes fourth-quarter results into the red

International Business Machines Corp. reported higher revenue for the first time in 23 quarters and signaled continued growth into 2018, giving Chief Executive Ginni Rometty breathing space as she tries to turn around the century-old tech giant.

Fourth-quarter revenue rose 3.6% to $22.54 billion. The last time IBM had revenue growth from the prior year was the first quarter of 2012, Ms. Rometty’s first as chief.

Several factors drove growth in the latest quarter: sales of industrial-strength computers—which the company typically refreshes every few years— rose 32% to $3.33 billion, while cloud-computing revenue climbed 30% to $5.5 billion. Also, currency exchange rates have been working in IBM’s favor lately, accounting for 3 percentage points of the quarter’s revenue growth after years of being a headwind.

IBM said it took a $5.5 billion charge related to the new U.S. tax law, helping to push it into the red for the period. Its tax rate, excluding the charge but including certain one-time benefits, was 6%.

In all, the company reported a fourth-quarter loss of $1.05 billion, or $1.14 a share, compared with profit of $4.5 billion, or $4.72 a share, a year earlier. Read the rest of this entry »

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Johnson: The importance of pauses in conversation

15. December 2017

Date: 14-12-2017
Source: The Economist

“Um”, “uh”, “mm-hmm” and interruption are not killers of conversation, but its lubricants

MARGARET THATCHER was known for a voice that brooked no disagreement. While still in opposition, she had taken elocution lessons to sound more forceful. Despite this, she was often interrupted in interviews as prime minister, and in 1982, three researchers set out to understand why. They played clips from one of her interviews to a variety of people. The clips included segments that ended in interruption (while editing out the interruptions themselves). More often than not, those hearing the interrupted phrases thought that the prime minister was ending her conversational turn. It seems her interviewer had come to a similar conclusion.

Why? Conversation, it turns out, is a finely tuned machine, as Nick Enfield, a linguist at the University of Sydney, suggests in “How We Talk”. Humans mostly follow a rule called “no gap, no overlap”, reacting to the end of a conversational turn by beginning their own in about 200 milliseconds—about the time it takes a sprinter to respond to the starting gun. This is all the more remarkable given that it takes about 600 milliseconds for someone to work out what they are going to say by mentally retrieving the words and organising how they are to be expressed.

People, therefore, must plan to begin speaking before their conversation partner has stopped. That requires a fine attention to the cues signalling the end of a turn, such as a lengthening of syllables and a drop in pitch. As it happens, using a downward shift of pitch is also a frequent piece of advice given to those who want to sound more authoritative—like Thatcher. The researchers studying the times she was interrupted found precisely that a sharp drop in her pitch accurately predicted an interruption. Read the rest of this entry »


Another Thing Amazon Is Disrupting: Business-School Recruiting

6. October 2017

Date: 06-10-2017
Source: The Wall Street Journal

Amazon has hired some 1,000 newly minted M.B.A.s in the past year

Jewel Lai, center, a student at Dartmouth’s Tuck School of Business, spoke with Lindsey Windham, right, a senior marketing manager at Amazon, after a Sept. 19 information session led by Tuck alumni working at Amazon.

Amazon.com Inc., disrupter of industries from book selling to grocery shopping, has found its latest sector to upend—recruiting at the nation’s elite business schools.

The Seattle-based retail giant is now the top recruiter at the business schools of Carnegie Mellon University, Duke University and University of California, Berkeley. It is the biggest internship destination for first-year M.B.A.s at the University of Michigan, Massachusetts Institute of Technology, Dartmouth College and Duke. Amazon took in more interns from the University of Chicago’s Booth School of Business than either Bain & Co. or McKinsey & Co., which were until recently among the school’s top hirers of interns, according to Madhav Rajan, Booth’s dean. Read the rest of this entry »


A Rare Joint Interview with Microsoft CEO Satya Nadella and Bill Gates

26. September 2017

Date: 26-09-2017
Source: The Wall Street Journal

On the occasion of the publication of Nadella’s first book, out this fall, Nadella and his predecessor talk shop

In February 2014, Satya Nadella became the third CEO of Microsoft . Nadella, more soft-spoken than his predecessors, Bill Gates and Steve Ballmer, assumed the company’s helm amid one of its stormiest chapters. Ballmer, toward the end of his 14-year tenure, had purchased Nokia ’s mobile phone business at great cost ($7.2 billion) but failed to make a dent in the market dominance of Apple and Samsung . Nadella quickly nixed those ambitions and instead ramped up investment in artificial intelligence and commercial cloud computing. The result has been a remarkable turnaround, featuring major growth in cloud services revenue, a doubling of year-on-year profits and an all-time stock price high.

In his new book, Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone (released September 26), Nadella, 50, explains this corporate transformation, lays out his hopeful vision for technological progress and recounts his own rich personal history. Read the rest of this entry »


Do You Know How Others See You?

29. August 2017

Date: 29-08-2017
Source: The Wall Street Journal By Elizabeth Bernstein

We don’t always correctly read how the outside world reads us; new research shows what we can do to improve our perception and the benefits we’ll see

Most of us are not as self-aware as we think we are.

Research shows that people who have a high level of self-awareness—who see themselves, how they fit into the world and how others see them clearly—make smarter decisions, raise more mature children and are more successful in school and work. They’re less likely to lie, cheat and steal. And they have healthier relationships.

Tasha Eurich, an organizational psychologist from Denver, spent three years conducting a study on self-awareness and has a new book on it titled “Insight.” When it comes to self-knowledge, she says there are three types of people: those who have it, those who underestimate how much they have (she calls them “underraters”) and those who overestimate how much they have (“overraters”). Un derraters beat themselves up unnecessarily. Overraters believe they do everything well. She found no gender differences in her research.

Read the rest of this entry »


Crowded cloud: Microsoft

20. July 2017

Date: 20-07-2017
Source: The Economist

Today the world’s largest software company reports earnings for the second quarter. Its share price is at an all-time high, elevated by expectations that the chief executive, Satya Nadella, will continue to transform the company and develop new business lines.

Mr Nadella, who is enthusiastic about artificial intelligence (AI), wants Microsoft to become an “AI-first” firm. He has pumped more time and money into Azure, its cloud-computing business, hopeful that it will account for much of the firm’s future growth.

But the company faces stiff competition from deep-pocketed rivals, such as Amazon and Google. Jefferies, an investment bank, reckons Azure will chalk up around $5bn in sales in 2017, or 21% of the market—an impressive sum but far less than Amazon Web Services, with 71%. Investors will be looking for clues as to how much new cloud business Microsoft has won. When expectations are great, even good results can disappoint.


What will business technology look like tomorrow?

13. July 2017

Date: 13-07-2017
Source: The Economist
Subject: A new way to work

Two experts from MIT analyse the business implications of our digital future

Machine, Platform, Crowd: Harnessing our Digital Future. By Andrew McAfee and Erik Brynjolfsson. W.W. Norton; 402 pages; $28.95 and £22.99.

IN 2014 Andrew McAfee and Erik Brynjolfsson of the Massachusetts Institute of Technology published “The Second Machine Age”. The book was a balanced portrait of how new digital technologies were poised to improve society, even as they increased unemployment and depressed wages. In their latest work, “Machine, Platform, Crowd”, the authors seek to explain the business implications behind these developments.

Mr McAfee and Mr Brynjolfsson believe that the latest phase of computers and the internet have created three shifts in how work happens. The first is artificial intelligence (AI): a move from man to machine. In the past people worked with computers and, at the same time, were augmented by them: what the authors call the “standard partnership”. But that model is breaking down as computers improve and take more control.

You need only look at self-driving cars, online language translation and Amazon’s prototype cashierless shops to see that something big is happening. Digital technologies used to be applied to information—first numbers and text, and, later, music and video. Now, the digital technologies are invading the physical world.

For instance, designing a “heat exchanger”, a part in appliances like refrigerators, means balancing many different specifications and constraints. Humans settle for one that works well enough because to find the optimal one is too hard. But new “generative design” means AI-infused software can run zillions of tiny permutations to find the best possible design—one that a human might not come up with. And with 3D printing, those designs might be shared, modified and manufactured anywhere. Read the rest of this entry »